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First into the cage: the BMW M5 (MT, July 2009). Result: Cadillac CTS-V emerges victorious, leaving the aging Munich Mauler pummeled and bloodied. Next arrives the newly supercharged Jaguar XFR (MT, October 2009), all swagger and panache and Savile Row suavity. Outcome: CTS-V rips the English aspirant’s neatly pressed ascot to shreds. It’s at this point Cadillac‘s engineering team smirks a little.

Now comes Round Three — and the Caddy’s biggest threat yet: the 2010 Mercedes-Benz E63 AMG, a thundering, leather-wrapped cruise missile we’ve already dubbed the best AMG sedan to date. Pull up a seat. This one could get ugly.

The E63 represents the “biggest threat” as it’s the car best-equipped to confront the mighty, twice-victorious CTS-V. The M5 is, as noted, a dated design (a new, more potent edition is due in early 2011); it’s fast, but in our comparo didn’t display the handling moves necessary to trump the Cadillac. The Jag likewise proved quick, but likewise failed to surmount Motown’s monster — largely due to tricky limit handling and a poor performance-for-dollar ratio. The big Benz, though, is all-new and cutting-edge. What’s more, AMG has so thoroughly reworked the underlying E-Class, you’d barely recognize it.

The Benz and the Caddy each sport a 6.2-liter V-8 displacing within a few cubic centimeters of each other’s. The Cadillac’s dishes up a delectable performance paté, force-feeding air via supercharger to yield a sensational, class-topping 556 horsepower at 6100 rpm (you’d expect nothing less from an engine that’s a sibling to the Corvette ZR1’s LS9). In contrast, the AMG’s mill breathes air at whatever pressure Mother Nature is exhaling, yet this handbuilt, twin-cam, 32-valve beauty still romps with 518 horses at 6800 rpm — 11 horsepower more than in the previous version (the revised V-8 is also 12 percent more fuel-efficient). Charging side by side, the two sedans sound like a pair of dueling T-Rexes, though the naturally aspirated E63 rocks the earth with particular ferocity — especially during full-throttle upshifts, which it delivers like bazooka blasts.

Rolling onto our scales, the two contenders weighed in at just under 4300 pounds each — in fact, just two pounds apart. Naturally, you’d therefore expect the CTS-V, with its 38-horsepower advantage, to dispatch the E63 in a sprint. And you’d be…mostly wrong. In reality, through 80 mph the Benz and the Caddy run in a virtual dead heat, each gunning to 60 mph in just 4.1 seconds. The CTS-V’s power edge does yield a tick more speed by the quarter mile, but it’s no knockout. In the real world, the better driver — a shoe capable of expertly mixing revs and wheelspin for the perfect launch — could win the drag race in either car.

The E63 all but neutralizes the CTS-V’s added muscle — including its torque advantage of 86 pound-feet — thanks to a vastly superior automatic transmission. Whereas the Caddy’s six-speed is a conventional slushbox, the AMG boasts a seven-speed auto that dispenses with a torque converter in favor of a wet startup clutch. It’s a brilliant shifter, with a range of cockpit-selectable settings for gear changes delivered as you please. In full manual mode, the Benz can click off upshifts in a mere 100 milliseconds. What’s more, the E63 brandishes terrific, F1-style shift paddles behind the steering wheel, while the CTS-V uses silly wheel-mounted electronic buttons. Especially when you’re hammering full-tilt, the E63’s is the superior interface. (As readers of our M5 comparo will recall, Cadillac also offers a six-speed manual box in the CTS-V. It’s definitely the call for true driving enthusiasts, but of course requires even more driver skill to reach the edge of the Cadillac’s huge performance envelope.)

Each of these two bruisers offers handling prowess on par with an all-out sports car. Grip? They both churn around the skidpad at a Lotus-like 0.95 g. They posted nearly identical — and blistering — runs around our figure-eight course as well. But, of course, wheeling sedans as potent as these around a confined course of orange cones is like trying to exercise a Kentucky Derby winner in a Dixie Cup. These steeds are made to gallop — and we obliged them with a visit to the Streets of Willow Springs racetrack in California’s high desert. Care to guess the outcome? That’s right: Though the E63 recorded the fastest lap by a mere fraction, for all intents and purposes the two machines posted yet another performance tie.

Just how they ran, though, was revealing. Says our Ed Loh about the CTS-V: “Feels about a thousand pounds lighter than the E63, especially up front where there is more staccato up-and-down motion. A hoot to drive; in competitive mode it will hang out the tail at will.” Loh then says the following about the E63: “Largely neutral when cornering, which is very impressive for such a heavy-feeling car. Turn the wheel, and the outside tires bite — hard — tracking this train through the apex. There’s so much grip, I can imagine getting my passengers motion-sick in just a turn and a half.”

While the CTS-V turns out the numbers and never fails to impress, the E63 holds the cards for finesse and control. It’s just more poised at making speed, its tail planted under power (aided by excellent stability control), its front end loaded with bite and steering feel. For E63 duty, AMG widened the E-Class’s front track by more than two inches and redesigned the front axle — and it shows in the car’s unfailing polish. The big Benz rides remarkably well too, thanks in part to air cushions in the rear suspension (the front suspension uses conventional steel springs for superior handling precision). You can cruise quite comfortably in the E63 when not driving commando-style, whereas the CTS-V always reminds you of its track-biased tuning.

Though capable of producing almost identical performance numbers (they’re just two feet apart in our braking test too), the Benz and the Cadillac radiate vastly different personalities. The CTS-V is all youthful vigor and flash, its exterior fussy with brightwork (the glitzy mesh grille is “a monstrosity,” says Loh), its interior shimmering with glossy finishes that look, frankly, cheap. “Touchscreen display is maddeningly slow to respond to inputs,” Loh notes. “And the driver’s seat has me curling forward uncomfortably.”

The E63, in contrast, is put together like a Patek Philippe. Perhaps the exterior could use some time in a rock tumbler — it’s overly busy with “look at me” spoilers and “just like Audi’s!” LEDs tacked onto the front air dam. But the cockpit is a masterpiece: rich leather, brushed metal trim, designer controls, rear-seat room that makes the Caddy’s pale in comparison. “I like the controls, the seating position, the rear seat big enough for chauffeured types,” says Loh. “The E63 is the very definition of an executive cruise missile.”

Yes, you pay for such privilege. Base price of the E63 tops the CTS-V’s by over $25K. Regular readers know that return on the dollar is a critical component in all our comparison-test verdicts. Indeed, the CTS-V won its matches against the BMW M5 and Jaguar XFR in part because it delivered so much talent for far less cost. In this duel, however, our test drivers are unanimous in their opinion that the E63 AMG is worth its premium. The CTS-V remains the world’s leading sport-sedan value: It’s breathtakingly fast, laser-precise in responsiveness, and loaded with tech and luxury. But the Mercedes-Benz is the better car. In terms of performance, the E63 does everything the CTS-V can do — and with superior control and refinement. It’s also roomier, more advanced (including that superb seven-speed auto), far better-presented (especially inside), and more livable day to day (that air-suspended ride, among other virtues). The E63 AMG is a brilliant executive’s express.

In our closest sport-sedan matchup ever, we crown the Mercedes-Benz E63 AMG champ not by knockout but by unanimous decision. Now, bring on that all-new BMW M5.

First place: Mercedes-Benz E63 AMG
Premium price tag but premium performance — justifies its lofty sticker every time you climb aboard. One of the planet’s finest sport sedans.

Second place: Cadillac CTS-V
Rougher around the edges and even a bit garish. Then again, for many buyers that’s precisely the allure. Remains the performance value king.

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